The effects from the Covid-19 coronavirus on stock markets around the world could start denting people's KiwiSaver funds, a New Zealand sharebroker has warned.
People planning to use KiwiSaver to help buy their first home should do so sooner rather than later if they want to avoid their fund shrinking as the coronavirus hits stock markets, Chris Lee warned. Photo: 123RF
Paraparaumu sharebroker Chris Lee said although stock markets had fallen for a fifth successive day, taking the total cost of this week's plunge in values to more than five trillion dollars, the financial effects of coronovirus had not yet turned into blind panic.
He said the effect so far was reasonable, and markets tended to bounce back over time.
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However, KiwiSaver investments could still take a hit in the short term, he said, so people wanting to buy soon would be better off withdrawing money now, rather than watching what might happen.
"Frankly, anybody in a KiwiSaver who needs this money to buy a house this year would be very wise to get it out now, rather than take a punt on whether the year gets better or not."
